Shell Plc will pause investment in Kazakhstan as it navigates legal claims from the OPEC+ nation against oil majors that could stretch into the billions of dollars, Chief Executive Officer Wael Sawan said.
Kazakhstan is pressing multiple western oil companies for compensation across a series of cases both in the Central Asian country’s courts and in international arbitration. This month, it emerged that Shell and partners lost a dispute that could see them pay as much as $4 billion. There is also ongoing litigation about sulfur breaches and project costs.
“It does impact our appetite to invest further in Kazakhstan,” Sawan said Thursday during an earnings conference call with analysts. While the company sees plenty of investment opportunities in the future, “we will hold until we have a better line of sight to where things end up.”
The setbacks in Kazakhstan come as Shell seeks to ensure future production growth with a healthy inventory of projects. Acquisitions have largely filled the company’s production gap through 2030, buying time to deal with the 2030-2035 period, Sawan said in an interview on Thursday.
The Kazakh energy ministry didn’t reply to an emailed request for comment sent outside normal working hours.
Sawan didn’t elaborate on whether the pause would apply to new or existing projects. Shell didn’t immediately respond to a request to clarify whether the CEO was talking about new or existing investments.
The latest dispute was against the Karachaganak field joint venture led by Italy’s Eni SpA and Shell, over cost deductions. Other partners include Chevron Corp., Lukoil PJSC and KazMunayGas National Co. The venture may still appeal the decision.
Last year, the companies proposed settling the dispute by building a plant that would process natural gas from the field for domestic use.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
//console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 76 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
